The Finance Minister however emphasised that the GST rate will need to be raised sooner than later, within the timeframe of 2022 to 2025, given the pressing need to bolster Government revenue to fund rising recurrent healthcare expenditure. In Budget 2018, the Government had announced its intention to increase the GST rate from 7% to 9% sometime between 2021 and 2025.
Given the lead time needed by GST-registered businesses to prepare for a GST rate increase, it would appear unlikely that this will take place in 2022. A more likely timeframe would appear to be 2023 or 2024, depending on the economic outlook at that point in time.
Source: PwC
